ICICI Bank beats estimates with 36% jump in Q2 net profit
Reuters | | Posted by Singh Rahul Sunilkumar
India’s second largest private lender ICICI Bank reported a 35.8% increase in net profit for the July-September quarter on Saturday, buoyed by strong growth in core lending income and robust loan growth.
Standalone net profit rose to a record 102.61 billion Indian rupees ($1.23 billion) in the second financial quarter, from 75.58 billion rupees in the same period a year earlier.
That was significantly above analysts’ forecast of 96.26 billion rupees, according to LSEG data.
Net interest income – the difference between interest earned and paid – rose 23.8% to 183.08 billion rupees.
The net interest margin – a key gauge of lender’s profitability – was at 4.53% in the reporting quarter compared to 4.31% last year, but declined from 4.78% reported in the prior quarter.
Net domestic loans grew by 19.3% year-on-year, while deposits grew 18.8%.
ICICI Bank’s asset quality improved, with its gross non-performing assets (NPA) ratio at 2.48% as of end-September, compared with 2.76% at the end of June.
The bank’s net NPA ratio declined to 0.43% at the end of the quarter, compared with 0.48% at the end of the prior quarter.
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